Flynn tells Mahon she did not query father's funds

Mayo TD Ms Beverley Flynn has told the Mahon tribunal she had never asked her father, Mr Pádraig Flynn, for the source of funds she invested for him in offshore accounts.

The tribunal heard Ms Flynn was working as an investment manager for National Irish Bank in 1989 when her father, a former minister for the environment and EU Commissioner, asked her about investing £25,000 for him.

Ms Flynn recommended three investments, the MIM Britannia Investment Fund, the MIM Britannia Nippon Warrant Fund and the Flemings International Eastern Opportunities Fund.

These investments were agreed upon and made in the names of her parents, Pádraig  and Dorothy Flynn. Her name was also included on the contracts - on her advice - solely because, as an employee of NIB, it would help for administrative purposes. "I had no beneficial interest in the funds," she said.

Ms Flynn insisted a paragraph in the agreement sent to her father that guaranteed confidentiality to all NIB clients and non-disclosure of investment details taxation authorities was standard practice for the bank.

She objected to a suggestion by counsel for the tribunal, Ms Patricia Dillon SC, that the bank was guaranteeing its clients "secrecy" by using this clause.

"[The word secret] seems to imply something is not correct," she said. The investment was absolutely legal, she said, adding that it was "crystal clear" that the client was responsible for making their own tax returns.

The TD accepted that she had invested a total of £68,000 in separate funds for her parents between 1989 and 1997. This comprised the initial £25,000 and a  £10,000 top-up in the fund in July 1990. She also invested £33,000 of her parents money in buying dollars with a bank in New York in 1997.

Under rigorous questioning from Ms Dillion, Ms Flynn accepted that while documents furnished by the tribunal show that she was involved in the various transactions, she had no recollection of the actual events. For example, she said she could not remember whether her father or mother gave her cash, bank drafts or cheques for the investment of £25,000 in 1989.

"Is it that you have amnesia about cash?" asked Ms Dillon.

"No, I just don't recall, it's as simple as that." She had "hundreds, if not thousands of clients" while working for NIB, and could not possibly be expected to remember every detail.

Surely, asked tribunal chairman Judge Alan Mahon, she would remember if she invested substantial amounts of cash for her parents in 1997? "I don't recall, but I accept from the documents that I did."

Ms Flynn agreed with Judge Mahon that these were "very large, very unusual" investments. Although she could not recall the details, it was "probable" that she had made the withdrawals.

However, she insisted she had never asked her father where the money came from, nor was the source of the funds ever discussed in their family home.

The tribunal has previously heard evidence from property developer Mr Tom Gilmartin that he gave Mr Flynn a cheque for £50,000 in June 1989, which he says was intended for Fianna Fáil.  The money never made it into the party's coffers.

Mr Gilmartin insisted during his testimony last March there "were no strings attached" to the donation. "[Mr Flynn] was absolutely honourable at all times," he said. "At no time did he offer favours or did I ask."

The tribunal has  established that the £50,000 was lodged in a bogus non-resident account in the names of Mr Flynn and his wife. Half this money was then withdrawn and given to Ms Flynn to invest in offshore investments.